Bestbuy

Topics: Shopping mall, Retailing, China Pages: 3 (1068 words) Published: October 24, 2012
BestBuy Company, an American public company, has been a great success for selling consumer electronic goods. The key to its success in the US is due to its high quality for providing consumer services. Many trendy products were presented and displayed in a play-and-buy style in a very bright, spacious American style shopping centre located in those commercial areas. In 2006, a branch store of BestBuy Company has first started operated in Shanghai, China with a total of 5 stores. However, throughout the years, the stores scale has been declining and finally in 2011, BestBuy closed business in China. The major reason of the failure of running BestBuy in China is that Chinese customers consider Price as the first priority when purchase. Even though BestBuy provides the highest services quality, if they do not accept the price first see on the price tag, it is rather or almost difficult for them to pay for it at last. They would treat BestBuy store as a “Display Centre”, where the customers come and try the new products, if the price is not acceptable, they will turn out buy it in a local store to look for the cheapest price. For international marketing, one of the major difficulties in running the same business in different countries is that they have to face the cultural difference. Take the BestBuy case for instance. For American, the quality of products or shopping experience is no doubt the vital elements in operating a successful store. On the other hand, the majority of the local Chinese people are the conservative and the practical consumers, who will firstly focus on the prices rather than anything else. If they find a cheap product, they will want a cheaper one. Bargaining on prices with the sales is one of the strategies in gaining a product with a satisfying price. From the cultural difference, we can conclude that it is rather a big challenge to penetrate a local brand name/company into other countries with just using one concept that is succeeding in...
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